Renewed calls for an overhaul of political donation laws following Four Corners investigation

Disturbing revelations that mafia figures have given tens of thousands of dollars to the Liberal Party have prompted fresh calls for an overhaul of political donation laws.

A joint investigation by ABC's Four Corners program and Fairfax Media has uncovered a $51,000 donation to the Party's fundraising vehicle, the Millennium Forum.

The donation came as part of a successful campaign in 2004 to allow a known criminal - Mafia boss Frank Madafferi - to remain in Australia.

The claim is that a deportation order against the mafia identity with an extensive criminal past was overturned by then Immigration Minister Amanda Vanstone, after large donations to the Liberal Party and a lobbying campaign.

John Hewson, former leader of the Liberal Party, says the only way to guarantee transparency would be to ban all donations by entities and to shift to the public funding of political parties.